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Tong joins bipartisan push against crypto bill he says would curb state fraud cases

Connecticut's attorney general and 16 counterparts told Senate Banking Committee leaders that the Digital Asset Market Clarity Act would weaken state enforcement against cryptocurrency fraud.

Connecticut Attorney General William Tong joined a bipartisan group of attorneys general on Monday in urging Congress to rewrite a cryptocurrency bill they say would strip states of their power to pursue digital asset fraud.

In a letter to Sen. Tim Scott and Sen. Elizabeth Warren, the chair and ranking member of the Senate Committee on Banking, Housing and Urban Affairs, the attorneys general said the Digital Asset Market Clarity Act, as written, would keep states from acting as what they called the first line of defense against cryptocurrency fraud.

The letter says the bill would also let the Securities and Exchange Commission override state registration authority, a shift the attorneys general said could reach beyond digital assets and unsettle state securities regulation more broadly.

The attorneys general cited FBI figures showing $11.4 billion in reported losses from complaints involving cryptocurrency in 2025, up 22% from 2024, with an average reported loss of $62,604. They also cited Federal Trade Commission figures of $1.78 billion in cryptocurrency-related losses in 2025, a 25.6% increase over 2024. States have brought more than 330 anti-fraud enforcement actions in the crypto market since 2017, according to the letter.

"Americans are losing billions of dollars to crypto scams," Tong said. He said Congress needs to keep state and federal civil and criminal enforcement at full strength to stop the scams.

The letter asks Congress to preserve state enforcement and registration authority and to clarify language the attorneys general said is ambiguous. Attorneys general from 16 other states and the District of Columbia signed it, including Massachusetts and New York.

This brief was drafted by AI from a public agency press release and published by The New England Signal. Why we use AI for stories like this one.

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